Reader’s Question:

How does life insurance companies compute life insurance rates? I was talking to some life insurance agents here in South Carolina and all of them quoted higher rates for me. A friend told me its because I’m a smoker, is this true?

Desmond

Columbia, SC

There are a lot of factors used to determine your life insurance rates . Age, gender, weight, any health conditions you may have, your family’s medical history, your job, your lifestyle or activities you participate in, whether you take drugs, recreational or otherwise and yes, even being a smoker would definitely be considered when determining your life insurance rates. Once you submit an application with a life insurance provider there in South Carolina, they would use these information to evaluate your risk profile. The higher your risk of dying sooner, the more the provider would compensate for this risk by charging higher.

Smoking can actually cause your life insurance rates to be three to four times more expensive. Obviously, this is due to the serious, long-term implications that smoking brings to one’s health and lifespan.

If you are not happy with hat you are being quoted for life insurance, another option would be to go with a No-Exam life insurance policy that would not require to you to undergo any physical and medical exams. Although premiums for this kind of policy is not really cheap either, it may prove to be lower than what you will have to pay normally for being a smoker. Still, these are all guides and the best way to get affordable life insurance is to shop around. The Internet is full of life insurance portals that allows you to get quick, easy quotes and be able to compare companies for the best rates.